If the Consumption Function Lies Below the 45-Degree Line, Then

question 107

Multiple Choice

If the consumption function lies below the 45-degree line, then saving at these levels of disposable income will

• A) be positive.
• B) be negative.
• C) equal zero.
• D) be some amount that cannot be determined without additional information.

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Definitions:

Oral Stage

Freud's first psychosexual development stage, where an infant's pleasure centers are located in the mouth.

Chain-Smokes

The habit of smoking cigarettes successively, lighting each one from the stub of the last.

Fixation

In psychology, a persistent focus on an idea, emotion, or object, potentially hindering emotional development.

Psychosexual Stage

A concept in Freudian psychology that refers to different stages of child development, each characterized by a different focus of libido (sexual energy).